Understanding TikTok 

TikTok is a video-sharing platform that allows users to create, edit, share, and watch short-form video content. These videos can be anywhere from a few seconds to ten minutes long. 

Users share a range of different video types whether it’s jumping on a trending sound, doing a challenge or using a trending hashtag. 

The platform is often associated with a younger audience and, whilst 25% of users are between 10-19, 22.4% are 20-29 and another 21.7% are 30-39 years old. 

As a result, TikTok provides you with the chance to reach a wide range of people but mainly Millenials and Gen Z. 

The app is popular across the globe, and its viral trends are spreading across other social media channels and into popular culture. Songs, dances and fashion trends that began on TikTok often seep into mainstream so it has a huge impact on global trends. 

Aside from its impact on global trends, the platform has also played a part in reshaping the traditional customer journey. Rather than a linear journey to purchase, the TikTok journey is more of an infinite loop. This means that customers can enter, exit and rejoin the sales journey at any stage depending on their needs or wants. 

Can You Advertise Your Business on TikTok?

The short answer to this question is, yes, you can advertise your business on TikTok. The platform now offers a range of different ads to help you get your business seen by a much wider audience. 

These include: 

• In-feed ads are the most cost-effective way to promote your small or medium-sized business. These ads appear on the ‘For You’ pages, so they seem native to users. 
• Brand takeover ads are slightly more intrusive than in-feed ads. The number of brand takeover spots is limited by the app because they appear as soon as someone opens the app before they are then redirected to their feed. 
• Branded hashtags are challenges that users set up to encourage followers to repeat the challenge and post their own videos. Branded Hashtag Challenges are exactly the same but they’re paid for by brands and prioritised by TikTok. 
• Branded Effects are ads that appear as either branded lenses, stickers or other items for users to make use of in their videos.  

How to set up a TikTok Ad 

If you want to set up an ad for your brand, just follow these simple steps. 

Step 1: Set up a TikTok Ads account 

To run ads on Tiktok, you’ll need to set up an account. You’ll need to fill in your details and then, as long as you meet the platform’s criteria, TikTok will set up an account for you. 

Step 2: Create your Ads campaign 

If you’re familiar with setting up ads on platforms such as Facebook or LinkedIn, you shouldn’t find TikTok too different. It follows a similar format. All you need to do is click on the Create button at the top of the screen. TIkTok will ask you for a campaign objective whether it’s Traffic, Conversions or App Installs. 

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Step 3: Choose your Ad Placements and add your details 

Once you have the campaign set up, you will go on to set up your ad group. You can have multiple ads groups within one campaign. 

You can either choose to show your ads solely on the TikTok platform or on other platforms owned by TikTok’s umbrella brand. TikTok will then ask you to add details such as a URL, image or category. 

Step 4: Choose your target audience 

Next, you’ll need to choose the audience you want to target with your ads. This is vital if you want your campaign to be successful. Knowing exactly who you want to target will help you to get the most from your budget. 

Targeting can be based on: 

• Gender
• Location 
• Age 
• Location
• Interests 
• Connections 

You can also use your own data, such as web traffic or existing lists, to make sure you’re targeting the right people and getting the most from your budget. 

Step 5: Decide on the goal for your ads 

The goal will help you achieve the right results from your campaigns. Just like Facebook, you can optimise your ads for a number of targets, including Conversions, Clicks and Impressions. This allows the platform to show your ad to the people it thinks are most likely to perform a relevant action. 

Should you advertise your business on TikTok? 

Ultimately, the decision on whether to advertise on TikTok or not is completely yours. However, there are a few factors to consider that can help you to decide whether or not it’s the right move for your business. 

Your audience 

The key method for evaluating whether TikTok advertising is right for your business is understanding whether it’s something that your target audience is using remember the demographics we outlined earlier in this blog? Do they fit with your ideal customers? If they don’t, we recommend spending your budget elsewhere. 

However, if they do, and TikTok is exactly where your audience is browsing on a regular basis,, TikTok can be an extremely powerful marketing tool for your business. 

According to research, 16% of marketers said that TikTok has the best ROI when compared to other platforms, coming joint second with Instagram and YouTube. 

Plus, 78% of small business owners said they received a positive ROI through TikTok. 

Your brand image

Your audience might be using TikTok but does it align with your brand image and your content strategy? If you want to advertise on TikTok on a regular basis, you’re going to need to produce fresh video content to keep your ads engaging and to help convert users on the platform. 

TikTok users prefer organic-looking content. It’s hard to tell the difference between organic and paid content on the platform at first glance so it’s important that users don’t feel they’re being directly sold to. 

Many brands also choose to collaborate with influencers to advertise their products and demonstrate their benefits. This type of content is better suited to some brands and sectors than others. For example, if you’re a beauty brand, this type of content is the perfect fit. On the other hand, for a solicitor, this may not be the best approach.

Your budget 

As with any marketing activity, having the budget to drive results that are effective for your business is essential. Think about how much you want to spend and what you want to achieve and whether this will be feasible. You may find that your budget is better spent elsewhere. 

Depending on the goal you set for your ads, TikTok will either charge you per Impression, Click or Conversion but the cost structure varies depending on several factors including the ad format, campaign goal, and the competition within your selected target audience’s market. 

TikTok operates on a bidding model similar to other platforms whereby you can choose between CPC, CPM or CPA, depending on your campaign objectives. Budgets can be set on a daily or total campaign basis, allowing you to control your spending while attempting to maximise your return on investment. 

To get the most out of your TikTok budget, it’s essential to start with clear campaign objectives and a deep understanding of your target audience. This will help you to choose the most appropriate ad format and bidding strategy to achieve your campaign goals within your budget. 

Testing and optimisation are crucial; starting with a lower budget to test different creatives, audiences, and ad formats can provide valuable insights which can inform more significant investment decisions. 

Pros and Cons of Advertising on TikTok 

Here are just some of the benefits and disadvantages of advertising your business on TikTok… 

Pros of advertising on TikTok 

High engagement rates 

When it comes to other social media platforms and their advertising capabilities, you can expect engagement rates of 1-2%. However, depending on your target audience, sector and your product, you can expect engagement rates of 4-18% on TikTok.

So, if you can create highly relevant and relatable content for your brand, you’re likely to see more people than ever engaging with your ads which can lead to increased brand awareness and sales for your business. Users spend a huge amount of time on the platform which increases the chances of your ads being seen and interacted with. The audience is particularly valuable for brands who are looking to build a community around their products and services. 

Innovative ad formats 

TikTok offers a variety of creative and immersive ad formats that go beyond traditional display ads. From in-feed videos that blend seamlessly with user content to branded effects and hashtag challenges that encourage user participation, these formats allow you to tell your story in more interactive and engaging ways. 

This not only enhances user experience but it also boosts ad performance through higher engagement rates. 

Advanced Targeting Capabilities 

With a sophisticated algorithm, TikTok allows you to target your campaigns precisely. You’re able to segment your audience based on demographics, interests, and behaviours to ensure your ads reach the most relevant audience. 

This targeting helps to maximise your return on ad spend by focusing your resources on the audiences who are most likely to convert. 

Viral Potential 

The content-driven nature of TikTok and its engaging content give your ads the potential to go viral. The platform is known for its trend-setting capabilities, where creative and relevant ads can quickly gain traction, amplifying your brand reach organically. 

The ability to achieve significant visibility through user engagement and sharing without having a large advertising budget is a key benefit of advertising on TikTok. 

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Cons of advertising on TikTok 

Content Saturation & Competition 

The sheer volume of content on TikTok can make it difficult for your ads to stand out, especially if you’re a small business. Competition on the platform is fierce with millions of brands vying for user attention amidst a stream of engaging content. 

To be successful on TikTok, you’re going to require some creativity and create unique ad content. This can be a significant hurdle for many businesses. 

Demographic Limitations 

Although TikTok’s user base is vast and growing, it is a predominantly younger audience, with many being teenagers and young adults. 

If you’re looking to target older generations, this can be a huge limitation of the platform, and you may find other platforms are better for your business. You might find it difficult to reach your ideal audience if it doesn’t align with TikTok’s user demographics. 

Brand Safety Concerns 

Due to the platform’s user-generated content model, there can be concerns for many around brand safety. Ads can appear alongside content that doesn’t necessarily align with your brand’s values or image which can lead to negative associations. 

While TikTok is working to improve content moderation, the nature of the platform still poses risks if you’re looking to maintain a specific brand image. 

Evolving Advertising Policies and Regulatory Environment 

TikTok’s advertising policies and the regulatory environment around social media are continually evolving. This can create uncertainty, as you’ll need to stay up-to-date and compliant with the latest regulations, which can sometimes limit the types of content you can use or the targeting options available. 

Making the Decision: Key Considerations 

So, now you know what TikTok advertising entails and the benefits it can offer for your business, what do you need to consider before utilising TikTok for your business? 

How does it fit with your overall strategy and goals? 

Think carefully about how TikTok fits in with your overall marketing strategy and goals. Is it going to work towards helping you achieve these? You might need to think backwards and look at where TikTok would fit in with the other digital marketing activities you’re running. Will it help to drive brand awareness so you can drive sales through other channels? Or will it help you to drive sales directly? 

Considering these questions will provide you with a good indicator of whether it’s worth giving TikTok a try.  

Do you have the resources? 

Due to the nature of TikTok, you will have to regularly create unique and engaging content to stand out. Are you able to ask someone on your team to take care of this or can you afford to employ someone or outsource this resource if you don’t? Creating fresh content and coming up with new ideas can be incredibly time-consuming so this is something that will play a huge part in whether TikTok is right for your business.

Experimentation and Learning 

Think about whether you have the time to consistently tweak your ads to improve performance. As with any digital marketing strategy, TikTok will require a bit of experimentation to find something that works for your business. 

TikTok’s analytics allow you to see how your individual ads are performing which allows you to adapt your strategies accordingly. You might find some ad formats work better than others or that your target audience engages more with some content than others. Knowing which factors affect performance can help you to improve your performance and results on an ongoing basis. 

Key Takeaways 

Choosing whether to invest in TikTok advertising for your business all comes down to your individual business, your goals and the audience you’re targeting. When it comes to choosing any new digital marketing platform or strategy, we always recommend you check these three factors first. There’s just no point in investing in advertising if your audience simply isn’t using the channel. 

Keeping ahead of the latest social media trends and knowing which platforms your audience is likely to be using will help you to stay ahead of competitors and continue driving results for your business. It will also help you to remain adaptable when it comes to your digital marketing strategies. 

If you’d like to know more about how TikTok can help your business to drive results, contact our team. One of our experts can provide advice on your current strategy or advise you on how TikTok could work for you.

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